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Which are the 10 most important Stock Markets in the world? Does BSE make the cut?

By Finserv MARKETS - Jul 31,2019
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Which Stock Markets Are The Most Important In The World?

A stock exchange is a place where shares, options, bonds, and securities are traded. It runs an intricate financial transaction system that allows companies to list their shares and sell them to raise capital. The platform also allows investors to buy these shares and earn a profit on their investment. A stock exchange signifies the heartbeat of the country’s economy and its health is an indicator of the nation’s economic power and strength. Market-linked investment instruments such as a mutual fund or a ULIP plan are also largely impacted by the fluctuations in the prices of shares traded in the stock market.

Bajaj Allianz Future Gain available at Finserv MARKETS is a unit linked insurance plan, which gives investors the option of choosing from 7 different funds, including equity and debt funds.

Though there are 60 major stock exchanges in the world with a total value or market capitalization of $69 trillion, there are only 16 major stock exchanges that are part of the exclusive ‘$1 Trillion Club.’ These 16 major stock exchanges alone account for more than 87% of the global market capitalization.

Here we will take a look at the 10 most important stock MARKETS in the world based on market capitalization and find out whether the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) make the cut among the top 10. Note that the top 10 list is based on November 2018 market capitalization data provided by the World Federation of Exchanges.

Do you know that the BSE and NSE feature in the ‘$1 Trillion Club’? Check out the graphic below.

1.New York Stock Exchange (NYSE)-United States

With a market capitalization of a whopping $22.9 trillion and about 2,400 listed companies, the NYSE is the world’s largest stock exchange. It is said that the NYSE alone is responsible for 40% of the world’s stock market capitalization. NYSE is larger than the world’s 50 smallest major exchanges.

2.NASDAQ – United States

Located in Times Square, New York City, the NASDAQ is the second largest stock exchange in the world in terms of market capitalization. It was founded in 1971 by a group of local stockbrokers and had a market capitalization of $10.93 trillion in March 2018.

3.Tokyo Stock Exchange – Japan

The Tokyo Stock Exchange (TSE) in Japan has over 3575 listed companies and boasts of a market capitalization of $6.22 trillion. The TSE was founded in 1878 and is now owned by the Japan Exchange Group.

4.Shanghai Stock Exchange – China

Though founded only in 1990, the Shanghai Stock Exchange (SSE) in China made rapid progress to become the world’s fourth largest stock exchange. The SSE had a market capitalization of $5 trillion in March 2018. Some of the major stocks listed at the SSE include PetroChina, the Agricultural Bank of China, and the Industrial and Commercial Bank of China.

5.Hong Kong Stock Exchange – Hong Kong (China)

Founded in 1891, the Hong Kong Stock Exchange (SEHK) is the third-largest stock exchange in Asia and the fifth largest in the world with a total market capitalization of $4.46 trillion as of March 2018.

6.London Stock Exchange (LSE) – England

Founded in 1801, the London Stock Exchange is one of the oldest stock exchanges in the world. The LSE is now the sixth largest in the world with a market capitalization of $4.38 trillion as of March 2018. It is owned by the London Exchange Group and is the largest stock exchange in Europe.

7.Euronext Stock Exchange

The Euronext Stock Exchange was founded in 2000 and represents the Eurozone countries of the Netherlands, Portugal, Belgium, France, Ireland and the UK. With a market cap of $4.36 trillion, Euronext is the seventh largest stock exchange in the world.

8.Shenzhen Stock Exchange (SZSE) – China

Founded in 1987, SZSE is the third stock exchange of the People’s Republic of China. The eighth largest stock exchange in the world has a market capitalization of $3.49 trillion.

9.Toronto Stock Exchange (TSX) – Canada

The TSX is the third largest stock exchange in North America after NYSE and NASDAQ. It has a market capitalization of $2.29 trillion and has over 1500 companies listed in its ranks. Some major players of TSX include the Royal Bank of Canada and Suncor Energy Inc.

10.Bombay Stock Exchange (BSE) – India

Last but not least, the BSE also features among the 10 most important stock MARKETS in the world. The BSE was founded in 1875 and has a market capitalization of over $2 trillion. It also has the highest number of listed companies – 5,749. [3] Many leading unit linked insurance plans in India depend upon the health and performance of the BSE. The net asset value (NAV) of an equity-based ULIP policy fluctuates according to how they perform at the BSE and the NSE.

For the average, new or risk-averse investor, the stock exchange may not be the right place to invest for the future. One has to be familiar with trading fundamentals and know how to manage risks or you could end up making a costly mistake. Therefore, unit linked insurance plans such as the Bajaj Allianz Future Gain, available at Finserv MARKETS can shield you from the vagaries of the equity market and help you in wealth creation. Enjoy ULIP tax benefits while securing yourself and your family with life insurance coverage.

To know more on ULIP investments in depth, you can check out these blogs:

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